MUMBAI, April 21 (Xinhua) -- India's economic activity has seen an unprecedented disruption over the past few weeks following the nation-wide lockdown due to COVID-19, said a private survey released by an industry body, Tuesday.
Almost 72 percent of the respondents have reported that COVID-19 is having a "high to very high" level of impact on their business while majority of the respondents do not foresee a positive demand outlook for their business in this fiscal, with 70 percent of the surveyed firms expecting a degrowth in sales in the fiscal year 2020-21, said the statement by Federation of Indian Chambers of Commerce and Industry (FICCI), an industry body.
"The COVID-19 pandemic is causing deep economic harm and could reverse the gains made in the industrial economy over many decades. There is a need to render immediate and sizable support to industry to protect people, jobs, and enterprises. Industry members are reeling under severe financial stress and are in urgent need of ample liquidity to ensure business continuity," said Dr Sangita Reddy, President, FICCI.
"The plans prepared by businesses on fund-raising, investments and expansion are being pushed back. Businesses will focus on cost optimisation and supply chain management. There is a significant expectation from the Government for a financial stimulus and providing liquidity, including by way of tax refunds and cheaper credit, so that the economy returns to normalcy faster," said Dinesh Kanabar, CEO, Dhruva Advisors, which conducted the joint survey with FICCI with 380 companies participating from across sectors
At least 61 percent respondents in the survey expect to defer approved expansion plans by 6-12 months, while 33 percent expect to defer approved expansion plans by over 12 months. Further, 60 percent of the surveyed companies have deferred their fund-raising plans for the next 6-12 months, while nearly 25 percent of the firms have shelved the same.
While 43 percent of the companies reported that they do not foresee an impact on exports, nearly 34 percent said that exports would take a hit by more than 10 percent, said the statement. Enditem
